(Boursier.com) — Against the tide, Akwel rose 2.8% to 14.7 euros at the opening of the Paris market. In 2023, the automotive supplier achieved gross operating surplus (EBE) up 26.1% to 101.9 ME and current operating income up 64% to 61 ME. The current operating margin improved by almost 2 points compared to 2022. Akwel recorded in 2023 a consolidated turnover increasing by 7.8% to €1.07 billion, returning to a level of activity close to of 2019, the last financial year preceding the fall of the global automobile market following the health crisis.
Given the expected stable global automotive production in 2024 in the European markets and North America, Akwel still anticipates activity at the same level for the current financial year as in 2023.
Akwel published a recovery in its profitability, a consequence of the resumption of activity and the better pass-through of inflation, notes TP ICAP Midcap. Although FCF generation has largely fallen, the group’s balance sheet remains strong. In the absence of additional comments regarding profitability for 2024, the broker leaves its estimates as is as well as its ‘sell’ recommendation.
Portzamparc speaks of a “very good performance by the group which confirms a good recovery in its margins in a complex inflationary environment”. The valuation still remains too limited according to the broker, who remains ‘purchase’ on the file, targeting a price of 15.20 euros.
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